Michael Kors Holdings Limited (NYSE:KORS) (the “Company”), a global luxury lifestyle brand with a multi-channel strategy, unique design and strong infrastructure, today announced its financial results for the first quarter ended June 30, 2012.

John Idol, the Company’s Chairman and Chief Executive Officer, said, “We are pleased with the strong start to our fiscal year with a 71% increase in total revenue and 185% growth in net income. Our results demonstrate the strong momentum of the Michael Kors brand and the continued execution of our key growth strategies. Michael Kors’ luxury fashion designs are resonating globally with our customers.”

For the first quarter ended June 30, 2012:

Total revenue increased 71% to $414.9 million from $243.1 million in the first quarter of fiscal 2012.

Retail net sales increased 76% to $215.0 million driven by a 37.3% increase in comparable store sales and 76 new store openings since the end of the first quarter last year. Wholesale net sales increased 66% to $182.4 million and licensing revenue increased 61% to $17.5 million.

Gross profit increased 83% to $251.0 million, and as a percentage of total revenue increased to 60.5% compared to 56.3% in the first quarter of fiscal 2012.

Income from operations increased 149% to $111.9 million, and as a percentage of total revenue was 27.0%. This compares to income from operations for the first quarter of fiscal 2012 of $45.0 million, or 18.5% as a percentage of total revenue.

Net income was $68.6 million, or $0.34 per diluted share, based on 199.4 million weighted average diluted shares outstanding. Net income for the first quarter of fiscal 2012 was $24.1 million, or $0.13 per diluted share, based on 179.2 million weighted average diluted shares outstanding.

At June 30, 2012, the Company operated 253 retail stores, including concessions, compared to 177 retail stores, including concessions, at the end of the same prior-year period. The Company had 68 additional retail stores, including concessions, operated through licensing partners. Including these, there were 321 Michael Kors stores worldwide at the end of the second quarter.

Mr. Idol continued, “During the first quarter we saw continued strength in each of our retail, wholesale and licensing segments and across geographies. In North America, our comparable store sales rose 38.4% reflecting the strong appeal of the Michael Kors brand, our consistent delivery of a compelling assortment of luxury products, and our exciting jet-set in-store experience. The 66% growth in our wholesale segment is the result of the continued conversions to shop-in-shops in department stores. Our strong revenue growth in Europe demonstrates the growing momentum of the Michael Kors brand which led to a 24.2% increase in comparable store sales and strong performance in our wholesale operations. The 61% growth in our licensing revenue was led by strong sales in the Michael Kors watch line. Overall, we are extremely excited about the long term growth potential of our Company as we continue to build upon the success we achieved in establishing Michael Kors as a global luxury lifestyle brand.”

Outlook

For the second quarter of fiscal 2013, the Company expects total revenue to be in the range of $490 million to $500 million. This assumes a comparable store sales increase of approximately 30%. Diluted earnings per share are expected to be in the range of $0.33 to $0.35 for the quarter. This assumes 201.0 million diluted weighted average shares outstanding and a 38% tax rate.

For fiscal 2013, the Company now expects total revenue to be in the range of $1.8 billion to $1.9 billion. This assumes a comparable store sales increase in the mid- to high-twenty percent range. Diluted earnings per share are expected to be in the range of $1.32 to $1.34 for the year. This assumes 201.2 million diluted weighted average shares outstanding and a 38% tax rate.

Conference Call Information

A conference call to discuss first quarter results is scheduled for today, August 14, 2012 at 8:00 a.m. EDT. A replay of the call will be available today at 11:00 a.m. EDT; to access the replay, dial 1-877-870-5176 for domestic callers or dial 1-858-384-5517 for international callers and enter access code 1463201. The conference call will also be webcast live in the investor relations section of www.michaelkors.com. The webcast will be accessible on the website for approximately 90 days after the call.

About Michael Kors

Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready to wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors, KORS Michael Kors and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready to wear, and a full line of fragrance products. Michael Kors stores are operated, either directly or through licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.

Forward Looking Statements

This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “seek,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. The forward-looking statements contained in this press release are based on assumptions that the Company has made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 20-F for the fiscal year ended March 31, 2012 (File No. 001-35368), filed on June 12, 2012 with the U.S. Securities and Exchange Commission.

SCHEDULE 1

MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

June 30,

July 2,

2012

2011

Net sales

$

397,370

$

232,282

Licensing revenue

17,495

10,844

Total revenue

414,865

243,126

Cost of goods sold

163,865

106,157

Gross profit

251,000

136,969

Total operating expenses

139,057

91,993

Income from operations

111,943

44,976

Interest expense, net

435

671

Foreign currency (gain) loss

(375

)

1,507

Income before provision for income taxes

111,883

42,798

Provision for income taxes

43,238

18,683

Net income

68,645

24,115

Net income applicable to preference shareholders

-

5,198

Net income available for ordinary shareholders

$

68,645

$

18,917

Weighted average ordinary shares outstanding:

Basic

192,790,454

140,554,377

Diluted

199,391,127

179,177,268

Net income per ordinary share (1):

Basic

$

0.36

$

0.13

Diluted

$

0.34

$

0.13

Statements of Comprehensive Income:

Net income

$

68,645

$

24,115

Foreign currency translation adjustments

(3,278

)

1,979

Comprehensive income

$

65,367

$

26,094

(1)

The calculation for basic earnings per ordinary share is based on net income available for ordinary shareholders divided by basic ordinary shares. The calculation for diluted earnings per share is based on net income divided by diluted shares.